Even before severe flooding devastated southern Alberta in the spring of 2013, insurance industry insiders were predicting that severe weather trends were pointing to an eventual increase in home insurance rates throughout the province. Acknowledging a rise in claims due to stronger and more frequent storms, insurance industry statistics showed that Alberta homeowners had suffered almost $500 million in weather-related damage between November 2011 and the first quarter of 2013. The floods then proved to be the costliest natural disaster in Canadian history, tallying up an estimated $6 billion worth of damage.
For homeowners, the bottom line is that home insurance in Calgary is poised to come up in price, and not just because insurance companies need to offset losses caused by the floods. While Calgary has always had to deal with an extreme climate, storms are increasing in severity. In particular, violent summer weather is occurring more often. Powerful lightning, strong winds and huge hailstorms are becoming more and more common, causing major damage and forcing insurance companies to shell out millions of dollars.
Home Insurance Calgary: How to Keep Your Rates Low
While there isn’t much you can do about the across-the-board rate hikes that seem inevitable, there are plenty of strategies you can use to minimize increases in your home insurance rates. Here are some suggestions:
- Install an alarm system. Contact a certified home security company, and have them install fire alarm and burglar alarm systems. If you sign up for a comprehensive home monitoring package, its costs will often be offset by a reduction in your home insurance rates. You should also carefully maintain your smoke and carbon monoxide detectors.
- Increase your deductible. As with most types of insurance, you will enjoy lower rates if your raise your deductible. The higher your deductible, the lower your premiums will be. However, remember that this strategy does involve some risk in the event that you ever have to file a claim.
- Ask about discounts. Most insurance companies don’t publicize it, but they typically offer a wide range of discounts. People in certain professions may qualify for discounted insurance, as might customers living on newer properties and customers who have paid their mortgages off in full. Also, you may also qualify for reduced rates if you’ve lived at the same address or gone claims-free for an extended period of time.
- Flood-proof your home. In the wake of the floods, residents in certain regions of Alberta are being required by the provincial government to flood-proof their rebuilt homes. If you voluntarily introduce these measures in your own home, you could enjoy stable home insurance rates if you live in a flood-susceptible area.
- Reassess your assets. If you have recently divested yourself of any valuable assets that were being stored in your home, report this to your insurance company as it could result in reductions to your premiums since you won’t need to protect those items anymore. Alternately, if you have valuables stored in your home, you may want to consider moving them to a secure offsite location if it means you could save on your home insurance rates.
Finally, remember that one of the best ways to save on your home insurance in Calgary is to carry multiple policies through the same company or brokerage. For example, if you bundle your car insurance and home insurance in Calgary, you could save up to 20 per cent on the total cost of your coverage. If you would like to learn more about how to stay ahead of rising home insurance rates, download our guide to find out how. We go over the reasons rates are rising and how to maximize your savings and keep your Calgary home insurance costs as low as possible.
Home Insurance Calgary: The Lane’s Insurance Advantage
Lane’s Insurance is a leading provider of home insurance in Calgary, as well as every other type of coverage you may need. Offering the lowest available rates on home insurance, auto insurance, business insurance and much more, Lane’s Insurance also offers attentive, personalized service and extensive claims support for all our clients.
We work closely with multiple carriers to ensure you always enjoy the lowest possible rates on your home insurance in Calgary. Visit us online for a free quote, or contact us directly to discuss your particular needs in more detail.
